Asked by
Elijah Ferrell
on Dec 19, 2024
Verified
Pi and Quia are general partners in Risqué Investissements, a limited partnership. Without Pi's knowledge or consent, Quia defrauds potential investors into buying limited partnerships in the firm and steals the amounts of their investments. In a suit by those partners against Pi to recover for their losses, Pi is most likely liable
A) if the investors are viewed as innocent third parties.
B) if the investors are construed as limited partners.
C) under any circumstances.
D) under no circumstances.
General Partners
Individuals who take part in the management and are personally liable for the debts of a partnership.
Limited Partnership
A partnership arrangement with two types of partners: general partners, who manage the business and are personally liable for its debts, and limited partners, whose liability is limited to their investment in the partnership.
Fraud Suits
Legal actions initiated due to accusations of deceit or intentional misinformation to gain a dishonest advantage.
- Understand the legal consequences of actions taken in a partnership and the responsibility of partners for liabilities.
Verified Answer
MS
Learning Objectives
- Understand the legal consequences of actions taken in a partnership and the responsibility of partners for liabilities.